Petra Diamonds in talks with lenders to avoid debt default

February 8th, 2018

African miner Petra Diamonds is likely to strike a deal with its lenders that could include a waiver or a reset of its debt covenants within the next month, its chief executive Johan Dippenaar said, Reuters reported.

The London-listed mining company said last week it had started negotiations with its lenders for debt agreements relating to its EBITDA for December 2017 and June 2018, said the Reuters report.

The confiscation of a consignment of its diamonds in Tanzania and a labor strike at its South African mines were the main reasons that Petra flagged in October that it was likely to fall short of its loan obligations, the Reuters report said.